Investment Rating - The report indicates that the detection service industry is a typical "long slope, thick snow" track, suggesting a high investment rating due to the long-term stable growth of free cash flow from leading companies [4][19]. Core Insights - The high valuation of leading companies in the detection service industry reflects their ability to generate stable and sustainable free cash flow over a long duration, which is discounted to present value [7][19]. - The detection service industry is characterized by perpetual growth attributes, with leading companies forming a competitive moat due to their first-mover advantages [8][40]. - The global market size for the detection service industry has exceeded 2 trillion RMB and continues to grow rapidly, driven by economic development and industrial upgrades [8][40]. Summary by Sections Introduction: Why Does the Detection Service Have "Valuation Premium"? - The ability to create free cash flow is linked to a company's profit growth capability (g) and profit quality (ROE). Higher profit and cash flow generation capabilities warrant higher valuations [7][19]. Characteristics of the Detection Service Industry: Perpetual Growth Attributes - The industry has a large market space and can sustain growth, driven by mandatory legal requirements, foundational support for commercial activities, and inherent needs of the public [8][40]. - The return on equity (ROE) is stable due to high barriers to entry, including brand credibility, laboratory networks, and qualification thresholds [8][51]. Review of International Leaders: SGS's Performance Over Two Decades - SGS has demonstrated a compound annual growth rate (CAGR) of 6.7% in revenue and 9.4% in net profit from 2001 to 2024, with free cash flow CAGR at 8.2%, indicating its stability as an industry benchmark [9][63]. - The company is expected to achieve organic revenue growth of 5%-7% until 2027, with an anticipated increase in operating profit margin by at least 1.5 percentage points [9][63]. Domestic Review: Expectations for Huace and Guangdian's ROE Recovery - Huace Testing is expected to see a recovery in ROE as it shifts from a revenue-oriented strategy to a profit-oriented one, with anticipated improvements in valuation [10][11]. - Guangdian Measurement's stock price volatility is closely tied to its performance, with a new management team focusing on high-end manufacturing and technology R&D, leading to rapid ROE and net profit recovery [11].

1. Report Industry Investment Rating No relevant content provided. 2. Core View of the Report - The current situation where "fixed income +" funds may sell bonds to replenish liquidity due to the adjustment in the equity market is not expected to last. As the expectation of interest rate cuts rises and the year - end allocation market arrives, especially if the equity market continues to fluctuate and adjust, bond yields may experience a new round of downward trends. The report maintains the judgment that the taxable yield of 10 - year treasury bonds will decline to 1.70% - 1.75% [1][6][7]. 3. Summary by Relevant Catalogs 3.1 Equity Down, Bonds Follow the Decline? - The stock - bond seesaw effect is well - known to bond market investors. Normally, when the equity market declines significantly, bond yields will decline smoothly. However, since November this year, the Shanghai Composite Index has significantly declined, but the price of 10 - year treasury bonds has oscillated overall and even declined. For example, on November 21, the Shanghai Composite Index fell 2.5%, but the yield of 10 - year treasury bonds increased [6][11]. - When the equity market adjusts, "fixed income +" funds may face large net - value drawdowns. High - volatility "fixed income +" funds have a higher proportion of equity, and their performance mainly comes from equity assets. When the equity market declines, they are more likely to face redemption pressure and may sell some bond assets. Low - volatility "fixed income +" funds have a lower proportion of equity and are more resistant to decline, but they may also sell some bond assets to prevent redemption pressure [7][11]. 3.2 "Fixed Income +" Funds May Sell Bonds to Replenish Liquidity - Recently, the yields of "fixed income +" funds have been generally poor, and the yields of interest - rate bonds have oscillated slightly upward. The weak equity market has not directly led to a bond bull market. The overall average daily return of "fixed income +" funds has turned negative, with a single - day return of - 1.4% on November 21. The higher the equity position in "fixed income +" funds, the more obvious the decline in the daily return in the recent week, and the more obvious the drawdown [7][15]. - When "fixed income +" funds face redemption pressure, fund managers may prefer to sell liquid bonds rather than reduce equity positions. This "sell bonds to protect stocks" strategy meets the liquidity needs of redemptions and avoids passive reduction of equity at a low point in the equity market. As a result, the bond market has been dull under selling pressure, and the net - value growth of "fixed income +" funds has been pressured by the weakness of the equity part [7][15]. - Although the cash reserves of "fixed income +" funds (current deposit ratio of about 1.3% - 1.6%) are generally higher than those of non - "fixed income +" funds (about 0.7% - 0.8%), during significant market fluctuations, the peak of single - day net redemptions may exceed the cash reserve level. Therefore, when facing strong liquidity pressure, "fixed income +" funds may still have to sell liquid bonds [7][26].

Investment Rating - The investment rating for the company is "Buy" and is maintained [8] Core Insights - The company reported a Q3 revenue of 297 million, a year-on-year decrease of 12.52%. However, the net profit attributable to the parent company was -28 million, showing a year-on-year increase of 47.55%. The non-recurring net profit attributable to the parent company was -39 million, with a year-on-year increase of 31.85%, indicating a significant reduction in losses and a proactive adjustment towards high-quality business [2][5] - The company's main business includes cloud services, communication network services, IDC services, and comprehensive solutions, with a strong operational capability expected to benefit from the increasing demand for reasoning computing power as AI applications gradually take off [2][5] - The company is focusing on high-power intelligent computing center construction and strategic adjustments to its IDC business, aiming to enhance overall operational quality [12] Financial Performance - As of Q3 2025, the company's cash flow from operating activities was 87 million, a year-on-year decrease of 49.77%. The gross profit margin for Q3 was 11.91%, an improvement of 5.53 percentage points year-on-year [5][12] - The company’s usage rights assets increased by 202.25% year-on-year to 161 million, while lease liabilities rose by 256.06% to 128 million, indicating accelerated infrastructure construction [12] - The company expects net profits attributable to the parent company to be -150 million, -70 million, and 50 million for the years 2025, 2026, and 2027 respectively [12] Strategic Developments - The company is enhancing its global layout and strengthening domestic core node construction, with new data centers in Huailai and Wuhu expected to create a nationwide intelligent computing network [12] - A strategic cooperation framework agreement was signed with the government of Yulin City, focusing on building a heterogeneous computing power adaptation center and fostering a computing power ecosystem [12] - The company aims to act as an enabler of intelligent computing, expanding global business and building an open ecosystem [12]

Investment Rating - The report maintains a "Positive" investment rating for the industry [6] Core Viewpoints - The report highlights that the short-term fluctuations in lithium carbonate do not alter the long-term positive outlook for the lithium industry, with a supply inflection point and a new demand cycle expected by 2026 [4][10] - The report emphasizes the strategic metals like rare earths and tungsten are poised for a value reassessment due to government policies and market dynamics [4] - The report notes that despite short-term volatility in copper and aluminum prices, the long-term trends remain favorable due to macroeconomic factors and supply-demand dynamics [4][10] Summary by Sections Energy Metals & Minor Metals - Lithium is expected to see a supply inflection point and a new demand cycle, with domestic power demand and energy storage needs driving growth. The supply side faces uncertainties, but the long-term outlook remains positive [4] - Strategic metals such as rare earths and tungsten are highlighted for their potential value reassessment, with government policies supporting demand recovery [4] - Tungsten prices are expected to rise due to tight supply and increased demand from downstream sectors [4] Precious Metals - The report indicates that the fluctuations in interest rate expectations are the main drivers for gold price recovery, maintaining a positive outlook for gold investments [4] - The report suggests that gold prices are likely to remain volatile but are not expected to peak in the early stages of a rate cut cycle [4] Industrial Metals - The report notes that copper and aluminum prices have experienced short-term declines due to increased risk aversion, but the long-term outlook remains optimistic due to economic recovery and supply adjustments [4] - The report provides data showing that copper inventories have increased significantly, while aluminum inventories have shown a mixed trend [4][10]

Report Industry Investment Rating - Not provided in the document Core Viewpoints - From November 24th to November 30th, the planned issuance of local government bonds is 329.69 billion yuan, including 224.12 billion yuan of new bonds (8.75 billion yuan of new general bonds and 215.37 billion yuan of new special bonds) and 105.57 billion yuan of refinancing bonds (66.39 billion yuan of refinancing general bonds and 39.19 billion yuan of refinancing special bonds) [1][5] - From November 17th to November 23rd, the actual issuance of local government bonds was 184.66 billion yuan, including 102.67 billion yuan of new bonds (20.36 billion yuan of new general bonds and 82.31 billion yuan of new special bonds) and 81.99 billion yuan of refinancing bonds (46.66 billion yuan of refinancing general bonds and 35.33 billion yuan of refinancing special bonds) [1][5] Summary by Directory Local Government Bond Actual Issuance and Forecasted Issuance - The net supply of local government bonds from November 17th to November 23rd was 126.7 billion yuan, and the forecasted net supply from November 24th to November 30th is 304.2 billion yuan [19] - There are differences between the planned issuance and actual issuance of local government bonds in October and November [15][20] Local Government Bond Net Supply - As of November 23rd, the issuance progress of new general bonds was 89.92%, and the issuance progress of new special bonds was 96.69% [26] - The cumulative scale of the difference between refinancing bonds and local government bond maturities as of November 23rd is presented in the relevant chart [26] Special Bond Issuance Details - As of November 23rd, the total disclosed amount of the second batch of the fifth - round special refinancing bonds was 1998.887 billion yuan, and the total disclosed amount of the sixth - round special refinancing bonds was 217.56 billion yuan, with an additional 69.113 billion yuan disclosed next week. The top three regions in terms of the disclosed scale of the second batch of the fifth - round are Jiangsu (251.1 billion yuan), Hunan (128.8 billion yuan), and Henan (121.587 billion yuan) [5] - As of November 23rd, the total disclosed amount of special new special bonds in 2025 was 1296.705 billion yuan, and since 2023, it was 2484.569 billion yuan. The top three regions in terms of the disclosed scale are Jiangsu (244.035 billion yuan), Hubei (133.769 billion yuan), and Xinjiang (131.17 billion yuan). In 2025, the top three regions are Jiangsu (128.9 billion yuan), Guangdong (102.748 billion yuan), and Yunnan (72.997 billion yuan) [6] Local Government Bond Investment and Trading - The first - and second - level spreads of local government bonds are presented in the relevant charts, including the overall first - level spread and the second - level spread by region [37][40] - The investment direction of new special bonds and the monthly statistics of project investment directions are also provided [42]

Report Industry Investment Rating No relevant content provided. Core Viewpoints - From November 17 to 21, 2025, the central bank conducted net 7 - day reverse repurchase operations and had 12 billion yuan of treasury cash fixed - deposits mature. The government bond net payment scale decreased slightly in the week of November 17 - 23 compared to the previous week. The yield of maturing inter - bank certificates of deposit (ICDs) remained stable overall, and the average leverage ratio in the inter - bank bond market was basically stable. The estimated median durations of medium - long - term and short - term interest - rate style pure bond funds decreased by 0.60 years and 0.20 years respectively on a weekly basis as of November 21, 2025 [2]. Summary by Directory 1. Funding Situation - **Central Bank Operations**: From November 17 to 21, 2025, the central bank conducted 167.6 billion yuan of 7 - day reverse repurchases, with 112.2 billion yuan maturing, resulting in a net injection of 55.4 billion yuan, and 12 billion yuan of treasury cash fixed - deposits matured. From November 24 to 28, 112.2 billion yuan of 7 - day reverse repurchases will mature, 12 billion yuan of treasury cash fixed - deposits will be operated on the 24th, and 90 billion yuan of medium - term lending facilities (MLF) will mature on the 25th [6]. - **Funding Rate Fluctuations**: From November 17 to 21, 2025, the average values of DR001 and R001 were 1.43% and 1.49% respectively, up 0.9 and 1.9 basis points compared to November 10 - 14. The average values of DR007 and R007 were 1.50% and 1.52% respectively, up 0.8 and 1.5 basis points compared to November 10 - 14. The funding rate was high at the beginning of the week and then decreased, mainly due to factors such as high government bond net payment, tax payments, and frozen funds from new stock listings on the Beijing Stock Exchange. Towards the end of November, the impact of government bond payments on the funding situation is expected to be low, but the impact of cross - quarter funding needs attention [7]. - **Government Bond Net Financing**: From November 17 to 23, 2025, the government bond net payment scale was about 41.057 billion yuan, a decrease of about 1.42 billion yuan compared to November 10 - 16. The net financing of treasury bonds was about 29.533 billion yuan, and that of local government bonds was about 11.524 billion yuan. From November 24 to 30, the government bond net payment scale is expected to be 23.38 billion yuan, with treasury bond net financing at about - 5.61 billion yuan and local government bond net financing at about 28.99 billion yuan [7]. 2. Inter - bank Certificates of Deposit - **Yield Stability**: As of November 21, 2025, the maturing yields of 1 - month and 3 - month ICDs were 1.4900% and 1.5735% respectively, down 0.5 and 0.2 basis points compared to November 14. The 1 - year ICD maturing yield remained unchanged at 1.6350% compared to November 14 [8]. - **Net Financing**: From November 17 to 23, 2025, the net financing of ICDs was about - 37.32 billion yuan, compared to about - 4.27 billion yuan in the week of November 10 - 16. Although the net financing was negative, the actual issuance scale was not low due to the high maturing scale. The estimated maturing repayment of ICDs from November 24 to 30 is 80.2 billion yuan, down from 90.7 billion yuan in the previous week, indicating a reduced pressure on roll - over [8]. 3. Institutional Behavior - **Leverage Ratio in the Inter - bank Bond Market**: From November 17 to 21, 2025, the estimated average leverage ratio in the inter - bank bond market was 107.15%, compared to 107.16% in the week of November 10 - 14. The estimated leverage ratios on November 21 and November 14 were about 107.31% and 107.15% respectively [9]. - **Duration of Bond Funds**: As of November 21, 2025, the estimated median duration (MA5) of medium - long - term interest - rate style pure bond funds was 4.23 years, down 0.60 years on a weekly basis, at the 79.8% percentile since early 2022. The estimated median duration (MA5) of short - term interest - rate style pure bond funds was 1.63 years, down 0.20 years on a weekly basis, at the 30.0% percentile since early 2022 [9].

Investment Rating - The industry investment rating is "Positive" and is maintained [10] Core Viewpoints - The significant drop in coking coal futures, with a cumulative decline of 8.16%, is primarily attributed to increased supply expectations. However, ongoing safety regulations continue to create a tight supply situation, limiting the extent of price corrections. It is recommended to focus on high-risk, low-position opportunities [2][7] - The coal index (Yangtze) fell by 5.79%, underperforming the CSI 300 index by 2.02 percentage points, ranking 21st out of 32 industries. The price of thermal coal remained stable at 834 RMB/ton, while the main coking coal price decreased by 80 RMB/ton to 1780 RMB/ton [6][21] Summary by Sections Coking Coal Market Analysis - The coking coal market is experiencing a weak and stable price trend. The main reasons for the price drop include increased supply expectations from Mongolia and reduced demand from steel mills due to declining profitability [7][23] - The supply situation remains tight due to low inventory levels at mines and ports, providing strong support for prices despite short-term downward pressure [6][23] Investment Recommendations - The report suggests embracing the coal sector's bottom reversal trend. Stock selection should follow three strategies: balanced attack and defense, elastic offense, and stable leaders [8] - Specific companies recommended include Yanzhou Coal Mining Company, China Shenhua Energy, and Shaanxi Coal and Chemical Industry [8][32] Market Performance - The coal sector has underperformed the broader market, with various indices showing declines. The coking coal index fell by 8.71%, and the coal refining index dropped by 13.50% [21][25] - The report highlights the need to monitor downstream demand and inventory levels closely, as these factors will influence future price movements [22][40]

- The report introduces two active quantitative strategies: "Dividend Selection Strategy" and "Industry High Winning Rate Strategy," launched by the Changjiang Quantitative Team since July 2023, aiming to provide alternative perspectives and investment choices for investors by tracking market hotspots and selecting industry stocks [7][14][15] - The "Dividend Series" includes two products: "Central State-Owned Enterprises High Dividend 30 Portfolio" and "Balanced Dividend 50 Portfolio," focusing on stable and growth-oriented dividend strategies. The "Industry Enhancement Series" targets the electronics sector, featuring "Electronics Balanced Allocation Enhancement Portfolio" and "Electronics Sector Preferred Enhancement Portfolio," which emphasizes mature sub-sector leading companies [15][16][21] - The "Central State-Owned Enterprises High Dividend 30 Portfolio" outperformed the CSI Dividend Total Return Index this week, achieving a weekly excess return of approximately 0.68%. The "Balanced Dividend 50 Portfolio" showed relatively high volatility recently but has achieved a significant excess return of about 6.14% since the beginning of 2025, ranking around the 40th percentile among all dividend fund products [16][21][23] - The "Electronics Balanced Allocation Enhancement Portfolio" and "Electronics Sector Preferred Enhancement Portfolio" failed to achieve positive excess returns this week. The former slightly underperformed the electronics total return index, while the latter struggled to keep pace [8][31][32]

Investment Rating - The report maintains a "Positive" investment rating for the utility sector [8] Core Insights - Guangdong has proposed a mechanism for sharing excess profits among electricity sales companies, which is expected to rationalize pricing behavior and reduce speculative pricing in the market [2][11] - The new policies aim to guide electricity sales companies to shift from a speculative pricing model to a service-oriented model, thereby stabilizing electricity prices and ensuring reasonable returns [11] - The report highlights that the profitability of independent electricity sales companies in Guangdong has increased, leading to a significant rise in the number of companies participating in the electricity market [11] Summary by Sections Electricity Sales Companies - Guangdong's new policy will share excess profits from electricity sales companies with retail users, compressing the arbitrage space and promoting rational pricing [2][11] - The shift in business model from arbitrage to providing value-added services is expected to stabilize market pricing and reduce irrational competition [11] Market Trends - The report notes that the average profit per kilowatt-hour for independent electricity sales companies in Guangdong reached 3.22 cents in the first half of 2025, an increase from 3.1 cents in 2024 [11] - The number of electricity sales companies in Guangdong rose from 257 in 2024 to 350 in 2025, a 36% increase, indicating strong market interest [11] Investment Recommendations - The report recommends focusing on quality coal-fired power operators such as Huaneng International, Datang Power, and Guodian Power, as well as hydropower companies like Yangtze Power and State Power Investment [11] - It also suggests investing in renewable energy companies like Longyuan Power and China Nuclear Power, which are expected to benefit from favorable policy changes [11]

Investment Rating - The report maintains a "Positive" investment rating for the transportation industry [11] Core Views - Recent stock price declines in the dry bulk shipping sector are attributed to a cooling sentiment in the Fujian market, following a significant rise influenced by the 301 tariff law [2][21] - Despite short-term price declines, the industry is expected to recover due to limited supply growth and three key demand catalysts: the commissioning of the West Simandou iron ore project, potential interest rate cuts by the Federal Reserve, and increased demand from post-war reconstruction in Ukraine and hydropower projects in Yasha [2][21] - Current valuation support comes from tight shipyard capacity, high new ship prices, and rebounding second-hand ship prices, indicating a strong reset cost support for valuations [2][21] Summary by Sections Dry Bulk Shipping - The dry bulk shipping sector has experienced a rapid stock price correction after a 41.1% increase from October 16 to November 17, primarily driven by the 301 tariff law and subsequent market sentiment shifts [22] - The West Simandou iron ore project is expected to reshape the iron ore shipping landscape, with an anticipated annual production capacity of 120 million tons by 2028, significantly impacting shipping demand [24][26] - The Federal Reserve's interest rate cuts historically correlate with increased shipping rates, as lower rates reduce the opportunity cost of holding inventory and stimulate demand for commodities [30][34] Passenger Transport - Domestic passenger transport volume has shown a 5% year-on-year increase, while international passenger volume has risen by 17% [8] - The average domestic passenger load factor has improved by 2.0 percentage points, and international load factors have increased by 3.5 percentage points [52] - The report highlights a trend of rising passenger volumes despite slight fluctuations in ticket prices and oil prices [52][53] Logistics - The logistics sector has seen an 8.9% year-on-year increase in express delivery volume, with air freight prices turning positive as cross-border e-commerce demand rises [10] - The report suggests focusing on companies with strong dividend capabilities and those benefiting from improved export expectations [10][67]